Quarterly Report • Jul 26, 2013
Quarterly Report
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The monthly cost run rate for operating costs before depreciation and amortisation during the second quarter stood on average at SEK 31.4 M, below the outlook given in the first quarter 2013 interim report, of approximately SEK 33.5 M. Tradedoubler anticipates that the costs during the remainder of 2013 will continue at the same level as during the interim period January – June, approximately SEK 32 M on average per month. For more information regarding outlook see page 9 in the report.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |||
|---|---|---|---|---|---|---|---|
| FINANCIAL OVERVIEW, SEK M | 2013 | 2012 | Change %1 | 2013 | 2012 | Change %1 | 2012 |
| Net sales | 490.3 | 573.7 | -10.0% | 1,018.2 | 1,213.9 | -12.1% | 2,307.7 |
| Gross profit | 114.0 | 140.8 | -15.2% | 233.4 | 287.2 | -15.1% | 541.5 |
| as a percentage of net sales | 23.2% | 24.5% | 22.9% | 23.7% | 23.5% | ||
| Total costs excluding depreciation | -94.2 | -140.5 | -30.8% | -194.6 | -268.8 | -25.4% | -519.3 |
| average per month | -31.4 | -46.8 | -32.4 | -44.8 | -43.3 | ||
| EBITDA | 19.8 | 0.3 | - | 38.8 | 18.4 | 178.2% | 22.2 |
| as a percentage of net sales | 4.0% | 0.0% | 3.8% | 1.5% | 1.0% | ||
| Adjusted EBITDA2 | 19.8 | 9.8 | 155.3% | 38.8 | 33.3 | 34.4% | 53.3 |
| as a percentage of net sales | 4.0% | 1.7% | 3.8% | 2.7% | 2.3% | ||
| Operating profit (EBIT) | 15.3 | -2.8 | - | 30.2 | 9.9 | 447.0% | 0.0 |
| Cash-flow from operating activities | 17.2 | -12.7 | 21.9 | -21.8 | -14.9 | ||
| Net investments in intangible assets | -8.2 | -12.2 | -16.3 | -20.4 | -36.2 | ||
| Earnings per share, SEK | 0.17 | -0.25 | 0.45 | -0.02 | -0.24 | ||
| Cash-flow from operating activities per share, SEK | 0.40 | -0.30 | 0.52 | -0.51 | -0.35 | ||
| Return on equity (12 months) (%) | 1.9 | 10.7 | 1.9 | 10.7 | -1.9 | ||
1Per cent changes are adjusted for changes in exchange rates 2Adjusted for change-related costs in 2012
This interim report will be presented at a press and analyst conference call on 26th of July 2013 at 10.00 a.m. CET. To attend the conference call, please dial (SE) +46 8 505 56481, (UK) +44 20 336 45373 or (US) +1 877 788 9023. The presentation may also be followed via webcast using the link:
http://financials.tradedoubler.com/en-gb/investorrelations
Tradedoubler discloses the information provided herein pursuant to the Swedish Securities Markets Act. The information was released for publication on 26th of July 2013 at 08.00 a.m. CET.
The Group's numbers in this interim report are recognised excluding discontinued operations unless otherwise stated. Numerical data in brackets refers to the corresponding period in 2012 unless otherwise stated. Rounding off differences may arise.
Tradedoubler is a leading international performance marketing and technology company which generated more than €3.5bn incremental revenue for its clients in 2012 through e- and mcommerce.
Tradedoubler is the pioneer of performance marketing in Europe, launched in 1999, and works on the basis that its advertiser clients only pay for a successful result - such as a sale or lead.
A large part of the success is based on Tradedoubler's deep understanding of the increasingly 'connected' consumer and the company´s advanced Performance Marketing Technology platform that generates incremental revenues for its clients.
Tradedoubler works with some of the most renowned companies in the world – from Expedia, Dell, and The Body Shop to Tesco, Disney, British Airways, American Express and Telefónica.
Tradedoubler has a dual-stream revenue model and generates revenue by:
A large portion of Tradedoubler's revenue is performancebased. And the activities which determine the remuneration are CPM (cost-per-thousands impressions), CPC (cost-per-click), CPL (cost-per-lead) and CPA (cost-per-action). Which one or combination of these activities forms the basis for the remuneration is decided on a case-by-case-basis. CPA and CPC are the most common. Tradedoubler's system tracks the
| CONTENT | PAGE | FINANCIAL CALENDAR | |
|---|---|---|---|
| This is Tradedoubler | 3 | Interim report January-September 2013 | October 30, 2013 |
| CEO Comment | 4 | Year-end report 2013 | February 6, 2014 |
| Market development | 5 | ||
| Product development | 5 | ||
| The Group's results | 5 | ||
| Consolidated income statement | 1110 |
customer activities generated by a certain advert in order to calculate the remuneration.
Tradedoublers goal is to return to profitable growth by becoming the best performing international performance marketing network. Sustainable competitive advantage is based on the following key building blocks:
Prioritise key clients in key markets: Increase time spent on value adding activities. An international account management team is responsible for serving large international clients. Ongoing program to ensure increased customer satisfaction.
Improved service offering: Tradedoubler targets three main areas in its product development: mobile, billing/payment and automation. The goal is to increase the functionality of the technology platform and to ensure alignment between clients, product and markets.
Best affiliate network: Quality of networks matters more than size and Tradedoubler focuses on relevant publishers in major markets and prioritized verticals.
Cost control: Rigorous cost management is essential and investments are chanelled into areas where they will create the most value.
Tradedoubler is organized into six market units: DACH, East, France & Benelux, Nordics, South and UK & Ireland. For more information see page 9.
The performance marketing sector shows continued signs of positive development as businesses invest to grow the online share of their operations. The key market indicators of e-commerce & online marketing spend remain positive, suggesting that this growth opportunity will continue for the foreseeable future.
In this environment, Tradedoubler is making positive progress on our plan to return to profitable growth in line with the market. Our costs
are firmly under control and are developing better than our previous outlook. Also, the net sales performance trend improved in the second quarter versus the first, although the year-on-year (y/y) comparison remains negative for this quarter.
Our net sales of SEK 490.3 M in the second quarter were down 10 per cent y/y, adjusted for changes in exchange rates. This was an improvement compared to the first quarter when the comparison was a less favourable 14 per cent. Revenues continued to be negatively affected by an anticipated volumedrop of 30 per cent in the non-strategic campaigns business as well as the previously reported loss of some large clients during early 2012. The performance marketing segment showed positive development as we closed the revenue gap to 7 per cent y/y in the second quarter, an improvement versus the 11 per cent in the first quarter.
The gross margin declined 1.3 percentage points y/y to 23.2 per cent, largely due to the business mix that shifted from campaigns to performance marketing. However it improved by approximately half a percentage point on the first quarter, mainly due to seasonality.
Looking at profitability in the second quarter we saw an improvement, EBITDA was SEK 19.8 M compared to the zero result achieved during the corresponding quarter last year.
Excluding change related costs in the second quarter 2012 the EBITDA grew by SEK 10 M.
These results show that our firm cost control and extensive efficiency measures, implemented during the second half of last year, have paid off and that we now have a firm foundation in place for future growth.
The positive response among larger customers, which generated a significant net number of new client wins in the first quarter, continued during the second quarter. This continued focus on sales supports our anticipated return to revenue growth in line with the market during the second half of the year. Normally, there is a lead-time of 3-6 months from new client win to revenue generation. The implementations are on track and will progressively have a positive impact on our top line during the remaining half of the year.
The performance of our technology segment was disappointing in the quarter as net sales declined 11 per cent y/y, adjusted for changes in exchange rates. This was due to a short-term operational challenge experienced as we transferred the sales responsibility from a small central team to our wider client facing teams. However we are confident that the increased opportunity afforded by this significantly larger sales force will in the medium and long-term significantly outweigh the shortterm setback of this strategic change. The EBITDA margin in the segment remains strong.
Cost efficiency remains a high priority and we achieved a continued sequential reduction in the second quarter, better than our earlier guidance of a flat development. This is the result of the cost consciousness we have instilled across the entire organisation. We anticipate that the cost run-rate, excluding depreciation and amortisation, will continue at approximately SEK 32 M on average per month for the remainder of 2013.
To conclude, the strategic changes we have delivered to date are significant, but we are still working tirelessly to achieve further progress. We follow our plan to return to profitable growth in line with the market during the second half of the year.
Rob Wilson President and CEO
While the challenging economic climate in most of Western Europe continues to put consumer spending under pressure, ecommerce is forecast to increase by an average of 11 per cent a year from €196bn in 2012 to €297bn by 20161 . According to Forrester, a total of three quarters of retail e-commerce in Western Europe occurs in three countries: the UK, Germany and France. While the growth in online retail in these markets will continue, this is likely to be at a lower rate as these markets reach maturity. Southern European consumers have traditionally been more reluctant to purchase online, however while remaining relatively small in e-commerce revenue terms, these will be the fastest-growing markets over the next four to five years.
Internet advertising in Western Europe is forecast to continue to grow and to take an increasing share of total ad spend. ZenithOptimedia, the media services agency, forecasts that online ad spend in Western Europe will increase from €17.7bn in 2012 to around €22.3bn by 2015 – average annual growth of around eight per cent2 . Online currently accounts for 23 per cent of total advertising expenditure and this is forecast to increase to 29 per cent by 2015.
The mobile channel represents a growing opportunity as both consumer mobile e-commerce and mobile advertising expenditure start to become increasingly significant. Forrester predicts that m-commerce in EU73 will rise from an estimated €2.7bn in 2012 to €19.2bn in 2017, an average annual growth rate of 48 per cent4 . While the majority of this spend will be in retail (€11.1bn), travel will also account for a significant proportion (€5.9bn).
Mobile advertising expenditure is also seeing high double digit growth and is the fastest growing segment within internet advertising expenditure. According to eMarketer Western European mobile ad spend will grow from its 2012 level of €1.3bn to €9.2bn by 20165 , an annual average growth rate of 64 per cent. The UK will continue to be the lead market, taking a 44 per cent share of European mobile ad spend in 2013 and still accounting for 40 per cent by 2016. UK mobile ad spend is forecast to exceed €1.2bn during 2013, representing 90 per cent growth compared to 2012.
This combination of increased online and mobile commerce and digital advertising spend implies continued healthy growth in performance marketing, despite the pressure on margins as the sector matures. We expect the performance marketing segment to grow by 3-7 per cent annually over the next few years.
Tradedoubler enhanced its mobile leadership position with the release of a major update to its mobile App tracking functionality in the second quarter. As m-commerce continues to grow in importance Tradedoubler is well positioned to take full advantage through its comprehensive suite of mobile performance marketing solutions which accurately track and
2 ZenithOptimedia Advertising Expenditure Forecasts June 2013 deliver sales through websites, mobile-enabled websites and mobile phone Apps.
Enhancing the payment process between advertisers and publishers has formed a key focus during the second quarter and will result in the release of improved platform payment functionality during the third quarter. A more efficient billing and payment process ensures an improved service to our clients whilst enabling the delivery of increased operational efficiency.
During the third quarter the self-serve capabilities of Tradedoubler´s website will be developed, which will provide publishers with improved visibility and searchability of the entire advertiser program base. This is particularly beneficial to smaller publishers that tend to self-manage their programmes. Furthermore, the product team will continue to drive the performance marketing product agenda. Ensuring customers can grasp the growing opportunities in mobile, that they gain increased actionable insights which in turn drive ROI, and that increased automation delivers greater operational efficiency.
Consolidated net sales during the interim period amounted to SEK 1,018.2 M (1,213.9), a decline of 12.1 per cent adjusted for changes in exchange rates. Consolidated net sales during the second quarter amounted to SEK 490.3 M (573.7), a decline of 10.0 per cent adjusted for changes in exchange rates. The decline is explained by a signficant volume drop in the nonstrategic campaigns business as well as the loss of some major clients within the performance marketing segment early 2012.
Gross profit during the interim period amounted to SEK 233.4 M (287.2), a decline of 15.1 per cent adjusted for changes in exchange rates. Gross profit during the quarter was SEK 114.0 M (140.8), a fall of 15.2 per cent adjusted for changes in exchange rates.
The gross margin during the interim period decreased to 22.9 per cent from 23.7 per cent during the same period of last year. The gross margin was 23.2 per cent during the quarter compared to 24.5 per cent during the same quarter last year. The margin decrease was mainly due to the business mix that shifted from campaigns to performance marketing. Compared to the first quarter, the gross margin increased by 0.6 percentage points, mainly due to seasonality.
Operating costs during the interim period amounted to SEK 194.6 M (268.8), a decrease of 25.4 per cent adjusted for changes in exchange rates. The first half of 2012 was affected by change related costs amounting to SEK 14.9 M. Operating costs during the quarter amounted to SEK 94.2 M (140.5), corresponding to an average of SEK 31.4 M per month, and a decrease of 30.8 per cent adjusted for changes in exchange rates. The second quarter 2012 was affected by change related costs amounting to SEK 9.6 M. Cost efficiency measures that were put in place during the third and fourth quarter 2012 have significantly reduced the cost base.
Operating profit before depreciation and amortisation (EBITDA) during the interim period amounted to SEK 38.8 M (18.4). Adjusted for change related costs EBITDA amounted to SEK 38.8 M (33.3), an increase of 34.4 per cent adjusted for changes in exchange rates. During the quarter, EBITDA amounted to SEK
1 eMarketer June 2013
3 EU7; France, Germany, Italy, Netherlands, Spain, Sweden, UK 4
Forrester Research Mobile Commerce Forecast 2012-2017 (EU7) 5 eMarketer Comparative Estimates Mobile Advertising June 2013
19.8 M (0.3). Adjusted for change related costs EBITDA amounted to SEK 19.8 M (9.8), an increase of SEK 10 M.
Anticipated and confirmed bad debt affected EBITDA in the interim period by SEK -3.7 M (-4.8) and by SEK 0.5 M (-4.5) in the second quarter.
Depreciation, amortisation and impairment losses amounted to SEK 8.6 M (8.5) during the interim period. During the quarter depreciation, amortisation and impairment losses amounted to SEK 4.5 M (3.1).
Operating profit (EBIT) amounted to SEK 30.2 M (9.9) during the interim period. During the quarter EBIT amounted to SEK 15.3 M (-2.8), an increase of SEK 18.1 M.
Financial income and expenses amounted to SEK-1.0 M (-0.8) during the interim period. During the quarter, financial income and expenses amounted to SEK -3.7 M (-1.1), driven mainly by exchange rate effects of SEK -3.5 M (-1.3). The Group had no interest-bearing loans at the end of the quarter (0.0).
Profit after tax for continuing operations amounted to SEK 19.3 M (-0.7) during the interim period. Tax affected profit by SEK -9.9 M (-9.8). During the quarter, profit after tax for continuing operations amounted to SEK 7.2 M (-10.8). Tax affected profit by SEK -4.3 M (-7.0).
Net sales during the interim period amounted to SEK 988.2 M (1,180.1) which was a decline of 12.2 per cent adjusted for changes in exchange rates. During the second quarter, net sales amounted to SEK 475.4 M (556.2) which was a decline of 10.0 per cent adjusted for changes in exchange rates. The decline in net sales was mainly explained by falling volumes in the campaign segment, which declined by approximately 30 per cent adjusted for changes in exchange rates, the same trend as in the first quarter. The performance marketing segment which accounts for approximately 90 per cent of Network net sales declined by approximately 7 per cent adjusted for changes in exchange rates, an improvement versus the decrease of 11 per cent in the first quarter.
During the second quarter the decline y/y in net sales increased compared to the first quarter in Nordics and France & Benelux. In Nordics the accelerated decline is related to the campaigns segment. In France & Benelux the decline in net sales increased both in campaigns and performance marketing, due to a generally slow start to the summer sales.
EBITDA during the interim period amounted to SEK 91.7 M (110.2), a decrease of 13.0 per cent adjusted for changes in exchange rates. During the second quarter, EBITDA amounted to SEK 45.3 M (50.9), a decrease of 6.8 per cent adjusted for changes in exchange rates.
During the second quarter the EBITDA-margin increased in UK & Ireland, France & Benelux as well as Nordics, compared to the same quarter last year. The EBITDA margin in UK & Ireland was positively affected by a reversal of provisions for anticipated bad debt made in previous periods of SEK 1.6 M.
Net sales during the interim period amounted to SEK 30.0 M (33.8) which was a decline of 7.7 per cent adjusted for changes in exchange rates. During the second quarter, net sales amounted to SEK 14.9 M (17.5), which was a decline of 11.1 per cent adjusted for changes in exchange rates.This was due to the short-term operational challenge experienced as the sales responsibility was transferred from a small central team to our wider client facing teams.
EBITDA during the interim period amounted to SEK 21.8 M (22.3), which was an increase of 1.9 per cent adjusted for changes in exchange rates. During the second quarter, EBITDA amounted to SEK 11.6 M (12.2), which was a decrease of 1.1 per cent adjusted for changes in exchange rates.
Costs for group management and support functions during the interim period amounted to SEK 74.7 M (114.1), a reduction of 33.8 per cent adjusted for changes in exchange rates. During the second quarter, costs for group management and support functions amounted to SEK 37.1 M (62.9), a reduction of 40.3 per cent adjusted for changes in exchange rates. Change related costs during the first half of 2012 described on page 5 were primarily attributed to group management and support functions.
| SEK M | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year |
|---|---|---|---|---|---|
| Net Sales | 2013 | 2012 | 2013 | 2012 | 2012 |
| DACH | 72.2 | 78.8 | 150.1 | 171.5 | 327.1 |
| East | 26.3 | 24.5 | 52.1 | 50.5 | 103.0 |
| France & Benelux | 121.2 | 139.4 | 270.2 | 303.9 | 584.2 |
| Nordics | 68.6 | 81.9 | 140.3 | 165.4 | 317.8 |
| South | 67.2 | 79.5 | 130.0 | 162.5 | 304.7 |
| UK & Ireland | 119.9 | 152.2 | 245.4 | 326.2 | 606.9 |
| Total Network | 475.4 | 556.2 | 988.2 | 1,180.1 | 2243.7 |
| Technology | 14.9 | 17.5 | 30.0 | 33.8 | 64.0 |
| Total Net Sales | 490.3 | 573.7 | 1,018.2 | 1,213.9 | 2307.7 |
| DACH | 8.2 | 9.2 | 18.1 | 20.8 | 35.8 |
|---|---|---|---|---|---|
| East | 1.6 | 1.5 | 3.3 | 2.4 | 3.4 |
| France & Benelux | 11.3 | 11.2 | 26.9 | 26.4 | 47.9 |
| Nordics | 7.6 | 8.6 | 14.1 | 16.3 | 31.6 |
| South | 7.8 | 12.4 | 15.0 | 23.8 | 40.1 |
| UK & Ireland | 8.7 | 8.0 | 14.4 | 20.4 | 30.9 |
| Total Network | 45.3 | 50.9 | 91.7 | 110.2 | 189.6 |
| Technology | 11.6 | 12.2 | 21.8 | 22.3 | 42.0 |
| Group mgmt & support functions | -37.1 | -62.9 | -74.7 | -114.1 | -209.5 |
| Total EBITDA | 19.8 | 0.3 | 38.8 | 18.4 | 22.2 |
| DACH | 11.4 | 11.6 | 12.1 | 12.1 | 10.9 |
|---|---|---|---|---|---|
| East | 6.1 | 6.2 | 6.4 | 4.8 | 3.3 |
| France & Benelux | 9.3 | 8.0 | 10.0 | 8.7 | 8.2 |
| Nordics | 11.1 | 10.5 | 10.0 | 9.9 | 9.9 |
| South | 11.6 | 15.6 | 11.5 | 14.7 | 13.1 |
| UK & Ireland | 7.2 | 5.3 | 5.8 | 6.3 | 5.1 |
| Total Network | 9.5 | 9.2 | 9.3 | 9.3 | 8.5 |
| Technology | 77.6 | 69.8 | 72.6 | 66.0 | 65.7 |
| Total EBITDA Margin | 4.0 | 0.0 | 3.8 | 1.5 | 1.0 |
Tradedoubler's operations, particularly within Network, fluctuate with the development of e-commerce and online advertising. Although these areas are showing positive underlying growth, there are fluctuations during the year particularly within e-commerce. The highest level of activity is before Christmas, which implies that the fourth quarter is normally the strongest for Tradedoubler.
Cash flow from operating activities before changes in working capital amounted to SEK 21.3 M (17.2) during the second quarter. The positive development in cash flow from operating activities was due to higher earnings, driven by a lower costbase.
Changes in working capital amounted to SEK -4.2 M (-30.0). A favourable change in accounts receivable was offset by a negative change in accounts payable, publisher debt and
prepayments. Cash flow from operating activities, after changes in working capital, amounted to SEK 17.2 M (-12.7).
Cash flow from operating activities during the interim period amounted to SEK 21.9 M (-21.8) after changes in working capital of SEK -14.8 M (-50.6).
Net investments in intangible assets during the quarter amounted to SEK -8.2 M (-12.2) of which SEK -1.9 M (0.0) relates to capitalised expenses for own personnel. These investments mainly consist of improvements to production and business systems as well as product development.
During the quarter Tradedoubler repurchased 345,000 own shares for a total amount of SEK -6.1 M in order to ensure delivery of shares to participants in Tradedoubler's Performance Related Share Programme 2013 for key employees.
Cash flow from continuing operations during the quarter amounted to SEK 2.5 M (-86.4), and to SEK -1.7 M (-107.9) during the interim period. A dividend of SEK 64.0 M was paid in the second quarter last year.
Cash and cash equivalents at the end of the quarter amounted to SEK 166.6 M (179.4) after being affected by translation differences of SEK 3.8 M (-3.5) during the interim period. At the same time the Group had no interest-bearing loans (0.0).
Consolidated shareholders' equity amounted to SEK 503.4 M (522.3) at end of the quarter. The return on equity for the rolling 12 months period was 1.9 per cent (10.7).
The parent company's net sales amounted to SEK 36.1 M (45.0) during the second quarter and to SEK 67.5 M (77.2) during the interim period. Revenue primarily consisted of licensing revenue and remuneration from subsidiaries for centrally performed services.
Operating profit (EBIT) amounted to SEK 5.3 M (-6.5) during the quarter and to SEK 7.3 M (-21.5) during the interim period. The improvement was due to the lower cost base.
Financial income and expenses amounted to SEK 14.8 M (1.4) during the quarter and to SEK 21.6 M (2.4) during the interim period. This was mainly due to dividends from subsidiaries of SEK 21.8 M (0.0).
Profit after tax amounted to SEK 19.7 M (-0.1) during the quarter and to SEK 27.3 M (-10.2) during the interim period.
The parent company's receivables from group companies amounted to SEK 99.1 M (150.4), at the end of the quarter, of which none (0.0) were non-current. The parent company's liabilities to group companies amounted to SEK 172.0 M (144.6), of which none (0.0) were non-current. Cash and cash equivalents amounted to SEK 57.3 M (28.4).
Deferred tax receivables amounted to SEK 23.2 M (14.3) at the end of the quarter. The deferred tax receivables are related to carry-forwards of SEK 9.2 M and deferred tax receivables related to previous Group loans of SEK 14.0 M. For more information, see notes to the consolidated financial statements, note C2 Critical estimates and judgements in the Annual Report 2012.
During the fourth quarter of 2011, Tradedoubler sold its Search operations and has subsequently reported this as a discontinued operation.
During the interim period, the discontinued operations affected the Group's results by SEK 0.0 M (0.0).
The result from discontinued operations for the interim period has not affected the Group's cash flow. For more information regarding discontinued operations, see page 19.
No transactions between Tradedoubler and related parties impacting the company's financial position and results have taken place, aside from remuneration to board and senior executives.
At the end of the interim period, Tradedoubler's staff corresponded to 462 (488) full-time equivalents (FTE), which includes full-time, temporary and contract employees. During the interim period Tradedoubler has included paid interns on longer contracts in the FTE-statistics. Without these the number of FTE at the end of the period would be 441.
Tradedoubler divides risks into market-related risks, operational risks, financial risks and legal risks. These risks are described on pages 19-21 of the 2012 Annual Report.
No significant risks and uncertainty factors are considered to have arisen since the latest submitted annual report.
For information regarding critical estimates and judgements in the financial statements see note C2 in the 2012 Annual Report.
No critical estimates or judgements are considered to have arisen since the latest submitted annual report.
As of January 1, 2013, Tradedoubler changed its segment reporting. The organisational structure, which was initially presented in the year-end report of 2012, consists of six market units within the Network segment. Technology will continue to be reported as a separate segment.
The market units are the following:
DACH: Austria, Germany, Switzerland East: Lithuania, Poland, Russia France & Benelux: Belgium, France, Netherlands Nordics: Denmark, Finland, Norway, Sweden South: Brazil, Italy, Portugal, Spain UK & Ireland: UK, Ireland
No significant events have occurred after the end of the reporting period.
The market in performance marketing is expected to continue to show growth during 2013. The company is expected to return to growth in line with the market during the second half of 2013.
The monthly cost run rate for operating costs before depreciation and amortisation during the second quarter stood on average at SEK 31.4 M, below the outlook given in the first
quarter 2013 interim report, of approximately SEK 33.5 M. Tradedoubler anticipates that the costs during the remainder of 2013 will continue at the same level as during the interim period January – June, approximately SEK 32 M on average per month.
This interim report is prepared in accordance with IAS 34, Interim Financial Reporting and the Swedish Annual Accounts Act.
As from January 1, 2013 Tradedoubler has changed the classification in the income statements where costs closer related to product development and administration costs have been reclassified from sales cost to development and administration costs respectively. It is the belief of Tradedoubler that the reclassification gives a more accurate picture of the operating expenses. Changes have been made in the consolidated income statement with corresponding changes in the income statement for the parent company. Comparative periods have been changed.
As from January 1, 2013 Tradedoubler applies a new segment reporting. The segments consist of the six market units within Network and the business unit Technology that continues to be reported as a separate segment. See page 9 for further information. Comparative periods have been restated in accordance with the new segments.
Except for the changes stated above the accounting policies and methods of calculation are unchanged, compared with the 2012 Annual Report.
For information on the accounting policies applied, see the 2012 Annual Report.
The total number of shares at the end of the interim period amounted to 42,807,449 of which 475,000 were in own custody. The average number of outstanding shares during the interim period was 42,665,930.
Earnings per share for continuing operations amounted to SEK 0.17 (-0.25) during the second quarter and SEK 0.45 (-0.02) during the interim period. Equity per share amounted to SEK 11.9 (12.2) at the end of the period.
The share price closed at SEK 17.10 on the final trading day in June, 2013, which was higher than at the end of June, 2012, when the share price was SEK 16.90. At year-end, the share closed at SEK 12.50.
This interim report will be presented at a press and analyst conference call on 26th of July 2013 at 10.00 a.m. CET. The teleconference will be held in English and may be followed via webcast on the website:
http://financials.tradedoubler.com/en-gb/investorrelations
and by telephone:
| Sweden: | +46 8 505 56481 |
|---|---|
| UK: | +44 20 336 45373 |
| US: | +1 877 788 9023 |
The presentation material will be published concurrently with the interim report.
| Interim report January-September 2013 | 30 October 2013 |
|---|---|
| Year-end report 2013 | 6 February 2014 |
Rob Wilson, President and CEO, telephone +44 (0) 7500 667 587 Jonas Ragnarsson, CFO, telephone +46 8 405 08 00 E-mail: [email protected]
Both an English version and a Swedish version of this report have been prepared. In the event of a difference between the two reports, the Swedish version shall prevail.
This interim report has not been subject to review by the company's auditor Ernst & Young AB.
The Board of Directors and the CEO declare that the interim report for the period January – June 2013 provides a true and fair overview of the Parent Company's and the Group's operations, financial position and results of operations as well as describing the material risks and uncertainties facing the Parent Company and other companies in the Group.
Stockholm, 26 th of July 2013
Chairman Board member
Board member Board member
Simon Turner Rob Wilson
Mats Sundström Kristofer Arwin
Martin Henricson Caroline Sundewall
Board member President and CEO
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Net Sales | 490,318 | 573,660 | 1,018,181 | 1,213,866 | 2,307,718 |
| Cost of goods sold | -376,367 | -432,873 | -784,762 | -926,690 | -1,766,240 |
| Gross profit | 113,951 | 140,786 | 233,419 | 287,176 | 541,478 |
| Selling expenses | -57,448 | -78,054 | -122,408 | -159,049 | -304,447 |
| Administrative expenses | -31,549 | -52,198 | -61,474 | -91,150 | -178,127 |
| Development expenses | -9,677 | -13,297 | -19,345 | -27,093 | -58,903 |
| Operating profit | 15,277 | -2,763 | 30,192 | 9,885 | 1 |
| Net financial items | -3,700 | -1,088 | -1,013 | -815 | 317 |
| Profit before tax | 11,577 | -3,851 | 29,179 | 9,070 | 317 |
| Tax | -4,348 | -6,988 | -9,920 | -9,800 | -10,475 |
| Net profit for continuing operations | 7,229 | -10,839 | 19,260 | -729 | -10,158 |
| Net profit for discontinued operations | - | - | - | - | 2,192 |
| Total net profit | 7,229 | -10,839 | 19,260 | -729 | -7,965 |
All earnings accrue to the parent company's shareholders.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Profit for the period, after tax | 7,229 | -10,839 | 19,260 | -729 | -7,965 |
| Other comprehensive income | |||||
| Items that subsequently will be reversed in the income statement | |||||
| Translation difference, net after tax | 20,229 | 9,629 | 1,868 | 6,231 | -20,480 |
| Total comprehensive income for the period, after tax | 27,458 | -1,210 | 21,128 | 5,502 | -28,445 |
| Comprehensive income attributable to: | |||||
| Parent company shareholders | 27,458 | -1,210 | 21,128 | 5,502 | -28,445 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| SEK | 2013 | 2012 | 2013 | 2012 | 2012 |
| Earnings per share for continuing operations | 0.17 | -0.25 | 0.45 | -0.02 | -0.24 |
| Total earnings per share (including discontinued operations) | 0.17 | -0.25 | 0.45 | -0.02 | -0.19 |
| Number of Shares | |||||
| Weighted average | 42,654,537 | 42,677,449 | 42,665,930 | 42,677,449 | 42,677,449 |
The earnings per share above apply before and after dilution.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2012 | |
| Gross profit (GP) / revenue (%) | 23.2 | 24.5 | 22.9 | 23.7 | 23.5 |
| EBITDA / revenue (%) | 4.0 | 0.0 | 3.8 | 1.5 | 1.0 |
| EBITDA / gross profit (GP) (%) | 17.4 | 0.2 | 16.6 | 6.4 | 4.1 |
| Equity/assets ratio (%) | 44.3 | 41.1 | 44.3 | 41.1 | 41.0 |
| Return on equity (12 months) (%) | 1.9 | 10.7 | 1.9 | 10.7 | -1.9 |
| Average number of employees | 470 | 487 | 471 | 490 | 487 |
| Return on Capital Employed (12 months) (%) | 4.1 | 15.2 | 4.1 | 15.2 | 0.2 |
| Cash-flow from operating activities per share, SEK | 0.40 | -0.30 | 0.52 | -0.51 | -0.35 |
| Equity per share, SEK | 11.9 | 12.2 | 11.9 | 12.2 | 11.4 |
| Stock price at the end of the period, SEK | 17.1 | 16.9 | 17.1 | 16.9 | 12.5 |
| 30 Jun | 30 Jun | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Assets | |||
| Non-current assets | |||
| Intangible fixed assets | 420,267 | 427,356 | 408,364 |
| Tangible fixed assets | 7,936 | 9,831 | 10,117 |
| Other non-current receivables | 3,995 | 3,709 | 3,647 |
| Deferred tax assets | 33,752 | 28,737 | 36,007 |
| Total non-current assets | 465,950 | 469,633 | 458,135 |
| Accounts receivable | 463,208 | 567,535 | 519,268 |
| Tax assets | 6,079 | 9,959 | 11,819 |
| Other current receivables | 33,894 | 44,824 | 36,408 |
| Cash & cash equivalents | 166,592 | 179,352 | 164,445 |
| Total current assets | 669,773 | 801,669 | 731,939 |
| Total assets | 1,135,723 | 1,271,302 | 1,190,074 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 503,439 | 522,329 | 488,382 |
| Deferred tax liabilities | 4,597 | 7,443 | 4,597 |
| Other provisions | 1,008 | 1,036 | 1,013 |
| Total long-term liabilities | 5,605 | 8,479 | 5,609 |
| Accounts payable | 13,685 | 22,937 | 20,642 |
| Current liabilities to publishers | 383,782 | 442,544 | 402,514 |
| Tax liabilities | 6,448 | 4,550 | 6,112 |
| Other current liabilities | 222,764 | 270,463 | 266,815 |
| Total current liabilities | 626,680 | 740,494 | 696,083 |
| Total shareholder´s equity and liabilities | 1,135,723 | 1,271,302 | 1,190,074 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Opening balance | 482,052 | 587,636 | 488,382 | 580,843 | 580,843 |
| Total comprehensive income for the period, continuing operations | 27,458 | -1,210 | 21,128 | 5,502 | -30,637 |
| Total comprehensive income for the period, discontinued operations* | - | - | - | - | 2,192 |
| Equity-settled share-based payments | - | -82 | - | - | - |
| Repurchase of shares | -6,071 | - | -6,071 | - | - |
| Dividend | - | -64,016 | - | -64,016 | -64,016 |
| Closing balance | 503,439 | 522,329 | 503,439 | 522,329 | 488,382 |
All capital accrues to the parent company's shareholders.
*See disclosure regarding discontinued operations, page 19.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Operating activities | |||||
| Profit before tax | 11,577 | -3,851 | 29,179 | 9,070 | 317 |
| Adjustments for items not included in cash flow | 7,145 | 21,373 | 9,495 | 23,142 | 49,825 |
| Income taxes paid | 2,612 | -291 | -1,984 | -3,370 | -15,106 |
| Cash flow from operating activities before changes in working | |||||
| capital | 21,333 | 17,231 | 36,690 | 28,842 | 35,036 |
| Changes in working capital | -4,180 | -29,978 | -14,783 | -50,626 | -49,980 |
| Cash flow from operating activities | 17,153 | -12,747 | 21,907 | -21,784 | -14,944 |
| Investing activities | |||||
| Net investments in intangible assets | -8,181 | -12,242 | -16,341 | -20,383 | -36,220 |
| Net investments in tangible assets | -153 | -823 | -867 | -1,485 | -4,721 |
| Net investments in financial assets | -283 | 3,468 | -313 | -224 | -209 |
| Cash flow from investing activities | -8,617 | -9,596 | -17,521 | -22,092 | -41,150 |
| Financing activities | |||||
| Repurchase of own shares | -6,071 | - | -6,071 | - | - |
| Dividend paid to parent company's shareholders | - | -64,016 | - | -64,016 | -64,016 |
| Cash flow from financing activities | -6,071 | -64,016 | -6,071 | -64,016 | -64,016 |
| Cash flow for the period from continuing operations | 2,465 | -86,359 | -1,685 | -107,892 | -120,110 |
| Cash flow from discontinued operations | |||||
| Cash flow from operating activities | - | - | - | - | - |
| Cash flow from investing activities | - | - | - | - | - |
| Cash flow from financing activities | - | - | - | - | - |
| Cash flow for the period from discontinued operations | - | - | - | - | - |
| Cash flow for the period | 2,465 | -86,359 | -1,685 | -107,892 | -120,110 |
| Cash and cash equivalents | |||||
| On the opening date | 150,302 | 268,222 | 164,445 | 290,745 | 290,745 |
| Translation difference in cash and cash equivalents | 13,825 | -2,511 | 3,832 | -3,501 | -6,189 |
| Cash and cash equivalens on the closing date | 166,592 | 179,352 | 166,592 | 179,352 | 164,446 |
| Adjustments for non-cash items | |||||
| Depreciation | 4,498 | 2,405 | 8,633 | 7,256 | 20,324 |
| Other | 2,647 | 18,968 | 862 | 15,886 | 29,501 |
| Total non-cash items | 7,145 | 21,373 | 9,495 | 23,142 | 49,825 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Net Sales | 36,114 | 45,007 | 67,523 | 77,167 | 128,906 |
| Cost of goods sold | -96 | -1,942 | -203 | -3,783 | -8,636 |
| Gross profit | 36,019 | 43,065 | 67,320 | 73,385 | 120,270 |
| Selling expenses | -468 | -176 | -547 | -317 | -2,105 |
| Administrative expenses | -23,249 | -38,594 | -45,558 | -71,974 | -127,848 |
| Development expenses | -7,013 | -10,764 | -13,937 | -22,610 | -46,625 |
| Operating profit | 5,289 | -6,469 | 7,277 | -21,517 | -56,308 |
| Net financial items | 14,763 | 1,410 | 21,632 | 2,388 | -999 |
| Profit before tax | 20,052 | -5,059 | 28,909 | -19,129 | -57,306 |
| Tax | -371 | 4,958 | -1,614 | 8,974 | 19,230 |
| Net profit | 19,681 | -101 | 27,295 | -10,155 | -38,076 |
| 30 Jun | 30 Jun | 31 dec | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Assets | |||
| Intangible fixed assets | 65,332 | 43,353 | 54,438 |
| Tangible fixed assets | 2,092 | 4,239 | 3,458 |
| Financial fixed assets | 198,105 | 206,331 | 198,105 |
| Deffered tax assets | 23,208 | 14,331 | 24,802 |
| Total fixed assets | 288,737 | 268,254 | 280,802 |
| Accounts receivable | 3,346 | 2,046 | 2,846 |
| Receivables from Group companies | 99,105 | 150,358 | 121,053 |
| Tax assets | 1,046 | 3,295 | 2,407 |
| Other current receivables | 10,014 | 12,109 | 9,450 |
| Cash & cash equivalents | 57,305 | 28,356 | 57,094 |
| Total current assets | 170,816 | 196,164 | 192,849 |
| Total assets | 459,553 | 464,418 | 473,651 |
| Shareholders' equity and liabilities | |||
| Shareholders equity | 193,329 | 200,026 | 172,105 |
| Accounts payable | 8,676 | 13,346 | 12,150 |
| Liabilities to Group companies | 172,041 | 144,592 | 191,076 |
| Other liabilities | 85,507 | 106,453 | 98,319 |
| Total current liabilities | 266,224 | 264,392 | 301,546 |
| Total shareholder´s equity and liabilities | 459,553 | 464,418 | 473,651 |
| 30 Jun | 30 Jun | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Group | |||
| Pledged assets | none | none | none |
| Rent deposits | 3,995 | 3,709 | 3,647 |
| Contingent liabilities | none | none | none |
| Parent company | |||
| Pledged assets | none | none | none |
| Contingent liabilities | 1,944 | 6,675 | 2,259 |
| Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 |
| Net Sales | 490,318 | 527,863 | 567,738 | 526,115 | 573,660 | 640,206 | 701,455 | 653,926 |
| Cost of goods sold | -376,367 | -408,395 | -433,151 | -406,399 | -432,873 | -493,816 | -534,213 | -501,386 |
| Gross profit | 113,951 | 119,468 | 134,587 | 119,715 | 140,786 | 146,390 | 167,241 | 152,540 |
| Total costs | -98,674 | -104,553 | -136,711 | -127,475 | -143,549 | -133,739 | -128,505 | -121,280 |
| Operating profit | 15,277 | 14,915 | -2,124 | -7,760 | -2,763 | 12,651 | 38,737 | 31,260 |
| Net financial items | -3,700 | 2,687 | -1,092 | 2,223 | -1,088 | 273 | -888 | -4,970 |
| Profit before tax | 11,577 | 17,602 | -3,216 | -5,537 | -3,852 | 12,924 | 37,849 | 26,290 |
| Tax | -4,348 | -5,571 | 4,365 | -5,041 | -6,988 | -2,811 | 405 | -6,369 |
| Net profit | 7,229 | 12,031 | 1,149 | -10,577 | -10,839 | 10,111 | 38,254 | 19,921 |
| 30 Jun | 31 Mar | 31 Dec | 30 Sep | 30 Jun | 31 Mar | 31 Dec | 30 Sep | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 |
| Assets | ||||||||
| Intangible fixed assets | 420,267 | 400,799 | 408,364 | 423,595 | 427,356 | 406,048 | 404,054 | 428,644 |
| Other fixed assets | 45,682 | 47,132 | 49,771 | 51,320 | 42,277 | 38,581 | 35,629 | 47,854 |
| Current receivables | 503,181 | 513,257 | 567,494 | 553,547 | 622,317 | 668,812 | 706,213 | 717,459 |
| Cash & cash equivalents | 166,592 | 150,302 | 164,445 | 173,288 | 179,352 | 268,222 | 290,745 | 261,636 |
| Total assets | 1,135,723 | 1,111,490 | 1,190,074 | 1,201,749 | 1,271,302 | 1,381,663 | 1,436,640 | 1,455,593 |
| Shareholders' equity and liabilities | ||||||||
| Shareholders' equity | 503,439 | 482,052 | 488,382 | 497,734 | 522,329 | 587,636 | 580,843 | 592,667 |
| Long-term non-interest bearing debt | 5,605 | 5,568 | 5,609 | 7,743 | 8,479 | 8,576 | 8,669 | 10,685 |
| Current non-interest bearing debt | 626,680 | 623,870 | 696,083 | 696,272 | 740,494 | 785,451 | 847,128 | 852,241 |
| Total shareholder´s equity and | ||||||||
| liabilities | 1,135,723 | 1,111,490 | 1,190,074 | 1,201,749 | 1,271,302 | 1,381,663 | 1,436,640 | 1,455,593 |
| Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 |
| Operating activities | ||||||||
| Profit before tax | 11,577 | 17,602 | -3,216 | -5,537 | -3,851 | 12,921 | 37,849 | 26,289 |
| Adjustments for items not included in | ||||||||
| cash flow | 7,145 | 2,349 | 22,867 | 3,815 | 21,373 | 1,769 | -5,473 | 4,675 |
| Tax paid | 2,612 | -4,594 | -4,381 | -7,355 | -291 | -3,079 | 8,283 | -8,020 |
| Cash flow from changes in working capital |
-4,180 | -10,603 | -21,870 | 22,515 | -29,978 | -20,648 | 27,263 | 22,821 |
| Cash flow from operating activities | 17,153 | 4,754 | -6,600 | 13,438 | -12,747 | -9,037 | 67,922 | 45,765 |
| Cash flow from investing activities | -8,617 | -8,904 | -8,428 | -10,629 | -9,596 | -12,496 | -33,739 | -9,403 |
| Cash flow from financing activities | -6,071 | - | - | - | -64,016 | - | - | - |
| Cash flow from continuing | 2,465 | -4,150 | -15,028 | 2,809 | -86,359 | -21,533 | 34,183 | 36,362 |
| operations | ||||||||
| Cash flow from discontinued | - | - | - | - | - | - | -2,058 | 3,362 |
| operations | ||||||||
| Cash flow for the period | 2,465 | -4,150 | -15,028 | 2,809 | -86,359 | -21,533 | 32,125 | 39,724 |
| Cash and cash equivalents | ||||||||
| On the opening date | 150,302 | 164,445 | 173,287 | 179,352 | 268,222 | 290,745 | 261,636 | 214,260 |
| Translation difference | 13,825 | -9,993 | 6,187 | -8,873 | -2,511 | -990 | -3,016 | 7,653 |
| Cash and cash equivalens on the | 166,592 | 150,302 | 164,445 | 173,287 | 179,352 | 268,222 | 290,745 | 261,636 |
| closing date |
| Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | |
|---|---|---|---|---|---|---|---|---|
| 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 | |
| Gross profit (GP) / revenue (%) | 23.2 | 22.6 | 23.7 | 22.8 | 24.5 | 22.9 | 23.8 | 23.3 |
| EBITDA / revenue (%) | 4.0 | 3.6 | 1.2 | -0.6 | 0.0 | 2.8 | 6.2 | 5.8 |
| EBITDA / gross profit (GP) (%) | 17.4 | 15.9 | 5.2 | -2.6 | 0.2 | 12.4 | 25.9 | 25.0 |
| Equity/assets ratio (%) | 44.3 | 43.4 | 41.0 | 41.4 | 41.1 | 42.5 | 40.4 | 40.7 |
| Return on equity last 12 months (%) | 1.9 | -1.5 | -1.9 | 4.9 | 10.7 | 14.7 | 16.8 | 13.8 |
| Average number of employees | 470 | 472 | 479 | 489 | 487 | 493 | 536 | 553 |
| Return on Capital Employed last 12 months (%) |
4.1 | 0.6 | 0.2 | 7.9 | 15.2 | 19.0 | 23.4 | 22.4 |
| Cash-flow from operating activities per share, SEK |
0.40 | 0.11 | -0.15 | 0.31 | -0.30 | -0.21 | 1.59 | 1.07 |
| Equity per share, SEK | 11.9 | 11.3 | 11.4 | 11.7 | 12.2 | 13.8 | 13.6 | 13.9 |
| Stock price at the end of the period, SEK |
17.1 | 15.0 | 12.5 | 14.0 | 16.9 | 31.1 | 27.3 | 23.0 |
| Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | |
|---|---|---|---|---|---|---|---|---|
| SEK M | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 |
| DACH | ||||||||
| Net sales | 72.2 | 77.8 | 83.8 | 71.7 | 78.8 | 92.7 | 101.9 | 86.7 |
| EBITDA | 8.2 | 9.9 | 8.3 | 6.7 | 9.2 | 11.6 | 14.3 | 11.1 |
| East | ||||||||
| Net sales | 26.3 | 25.9 | 30.0 | 22.5 | 24.5 | 26.0 | 25.5 | 25.6 |
| EBITDA | 1.6 | 1.7 | 0.6 | 0.5 | 1.5 | 0.9 | 1.9 | 2.6 |
| France & Benelux | ||||||||
| Net sales | 121.2 | 149.0 | 149.1 | 131.2 | 139.4 | 164.5 | 179.4 | 168.0 |
| EBITDA | 11.3 | 15.6 | 11.6 | 9.9 | 11.2 | 15.2 | 15.4 | 15.4 |
| Nordics | ||||||||
| Net sales | 68.6 | 71.7 | 81.7 | 70.6 | 81.9 | 83.6 | 93.4 | 84.0 |
| EBITDA | 7.6 | 6.4 | 7.7 | 7.6 | 8.6 | 7.7 | 10.1 | 10.2 |
| South | ||||||||
| Net sales | 67.2 | 62.8 | 71.2 | 71.0 | 79.5 | 83.1 | 90.4 | 96.0 |
| EBITDA | 7.8 | 7.1 | 8.6 | 7.6 | 12.4 | 11.4 | 13.4 | 14.9 |
| UK & Ireland | ||||||||
| Net sales | 119.9 | 125.5 | 135.8 | 144.9 | 152.2 | 174.0 | 194.0 | 178.3 |
| EBITDA | 8.7 | 5.7 | 7.9 | 2.6 | 8.0 | 12.4 | 14.5 | 11.9 |
| Technology | ||||||||
| Net sales | 14.9 | 15.1 | 16.0 | 14.2 | 17.5 | 16.3 | 16.8 | 15.4 |
| EBITDA | 11.6 | 10.2 | 10.6 | 9.2 | 12.2 | 10.1 | 10.8 | 9.4 |
| Group management & support functions | ||||||||
| Net sales | - | - | - | - | - | - | - | - |
| EBITDA | -37.1 | -37.6 | -48.3 | -47.1 | -62.9 | -51.2 | -37.0 | -40.7 |
| Total | ||||||||
| Net sales | 490.3 | 527.9 | 567.7 | 526.1 | 573.7 | 640.2 | 701.5 | 653.9 |
| EBITDA | 19.8 | 19.1 | 6.9 | -3.1 | 0.3 | 18.1 | 43.3 | 34.8 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Net Sales | - | - | - | - | -290 |
| Cost of goods sold | - | - | - | - | 4,914 |
| Gross profit | - | - | - | - | 4,624 |
| Total costs | - | - | - | - | -2,419 |
| Operating profit | - | - | - | - | 2,205 |
| Net financial items | - | - | - | - | 29 |
| Profit before tax | - | - | - | - | 2,234 |
| Tax | - | - | - | - | -42 |
| Net profit excl capital loss for the year for discontinued operations | - | - | - | - | 2,192 |
| Capital loss | - | - | - | - | - |
| Net profit for the year for discontinued operations | - | - | - | - | 2,192 |
| Other comprehensive income | |||||
| Net profit from discontinued operations | - | - | - | - | 2,192 |
| Translation difference on equity net after tax | - | - | - | - | - |
| Exchange difference on increased net investment, net after tax | - | - | - | - | - |
| Reversal of exchange difference on increased net investment, net after tax | - | - | - | - | - |
| Reversal of translation difference on equity, net after tax | - | - | - | - | - |
| Total other comprehensive income from discontinued operations | - | - | - | - | 2,192 |
Discontinued operations refers to the operations in the Search market unit, which were divested during the fourth quarter of 2011.
Return on equity. Profit for the period as a percentage of average equity calculated as opening plus closing equity divided by two.
Return on capital employed. Operating profit plus interest income as a percentage of average capital employed calculated as opening plus closing capital employed divided by two.
Equity per share. Equity divided by the number of outstanding shares on the balance sheet date.
Earnings per share. Net profit for the period attributable to the parent company's shareholders divided by the average number of shares.
Earnings per share after full dilution. Net profit/loss for the period divided by the average number of shares calculated after full dilution.
Cash flow per share. Cash flow divided by the average number of outstanding shares.
Operating margin. Operating profit as a percentage of sales.
Equity/assets ratio. Equity as a percentage of the balance sheet total.
Capital employed. Total assets less current and non-current non interest-bearing liabilities including deferred tax liabilities.
AdCode. An ad display system which is used in order to optimise and display the best ad on a publisher's website.
Affiliate. Used for a website which via adverts directs Internet visitor traffic to the advertising company's website.
Affiliate network. A system where advertisers that want to boost their Internet sales are matched together with website owners that want to boost their advertising revenue by means of an affiliate programme.
Affiliate programme. An agreement where the advertiser pays a fee to the publisher in order to relay traffic to the advertiser's website.
App download tracking. Software that enables the advertiser to monitor and obtain statistics about when consumers download and install software from the advertiser and how they use the software afterwards.
Cost-per-action (CPA). Means that the advertisers pay a fee which either is based on the sales generated by the advertising or on the number of leads (principally registrations) generated by the advert.
Cost-per-click (CPC). This pricing model means that advertisers pay a fee based on the number of clicks or unique visitors generated by the advertising.
Cost-per-lead (CPL). Means that the advertisers pay a fee which is based on the number of leads (primarily registrations) generated by the advert.
Cost-per-thousand impressions (CPM). A pricing model where advertisers pay a fee based on the number of views of an advert.
E-mail publishers. Use e-mail to send out targeted offers to a list of recipients.
EBIT. Earnings before interest and tax.
EBITDA. Earnings before interest, tax, depreciation and amortisation.
Full-time equivalent (FTE) or full-time employees. The total number of full-time and temporary as well as contract employees.
Performance-based. Collective term for marketing activities on the Internet where publishers only get paid when a predetermined transaction is generated.
Product feed. A distribution system where advertisers can upload their product databases in order to enable publishers to create content and ads on their websites.
Publisher. (Also called affiliate) Websites that agree on display of adverts and direct Internet visitor traffic to the Advertising company's website.
Trackability. The process and method for follow-up of website traffic, primarily through use of cookies.
Portals. Websites which act as a gateway to the Internet and offer broad content and large volumes of traffic. On the portal, there are several links, a search engine and other services, for instance, free e-mail or filters and blocking possibilities.
Search engine optimizing publishers. Own websites which use search engines, e.g. Google and Yahoo!, in combination with their own knowledge about the search engine and the advertiser in order to display the advertiser high up in the search results list. These publishers help to generate greater volumes.
Voucher code. Voucher codes that are created and easily distributed to consumers via a publisher's website. The consumer can then use the voucher code when purchasing a product/service from the advertiser.
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